If you tweet, they will follow: CEO tweets, social capital, and investor say-on-pay judgments

What is it about?

This paper examines whether investors viewing a CEO's disclosures on Twitter, as compared to on a corporate website, perceive enhanced feelings of social connectedness (i.e., social capital) with the CEO, leading to recommendations for higher levels of CEO compensation. This study is important as CEOs' use of social media for information disclosure is growing and little is know about how such use influences investor decision-making. We show that CEOs can use social media to build social capital with nonprofessional investors and influence compensation judgments.

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